Running Head: P&G GLOBAL BUSINESS SERVICES CASE 1

Case Study

Procter & Gamble: Global Business Services

Antanenka Maryia

Medvedeva Andelika

Mialeshka Maryia

Miller Hanna

Prakapait Dominyka

Rybakovait Simona

year II

ISM University of Management and Economics

International Business and Communication

26/04/2017
P&G GLOBAL BUSINESS SERVICES CASE
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Table of Contents
Introduction..........................................................................................................................3
1. Situation Analysis............................................................................................................4
1.1. Introduction..............................................................................................................4
1.2. Company History.....................................................................................................4
1.3. Introducing GBS......................................................................................................5
1.4. Employees................................................................................................................5
1.5. Case Issues and Challenges......................................................................................6
1.6. Situation Conclusion................................................................................................7
2. Problem identification.....................................................................................................7
2.1. SWOT analysis........................................................................................................7
2.2. Mind Map and Theoretical Framework...................................................................9
3. Scientific Article Presentation.......................................................................................12
5. Alternatives and Evaluation...........................................................................................14
5.1. Possible Alternatives..............................................................................................14
5.2. Evaluation of Alternatives......................................................................................15
6. Solution..........................................................................................................................18
7. Conclusion.....................................................................................................................22
References..........................................................................................................................24
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Introduction

Procter & Gamble (P&G) is a globally recognized consumer goods company

focused on a largely distinguished number of products. The company holds such titans as

Tide, Ivory, Crest, Always and many more household goods, food and beverages brands.

The phenomenal annual revenues of P&G, more than $4 billion, as well as almost

100,000 employees give a picture of a truly successful corporation, that is why it was

nominated by a huge number of journals and magazines.

Like many other global companies, it is orientated towards the commitment to its

employees, consumer satisfaction, goal achievements and, most importantly, constant

growth. Keeping strong relationship between employees and the management board

creates an outstanding organizational culture. The culture which drives workers, dedicates

all their power, reveals their most valuable capabilities. And if the company decides to

achieve even bigger revenues and do this by reorganizing its operations (in this case

change in what way the Global Business Services is connected to the company), the

organizational culture may certainly suffer from that. Global Business Services (GBS)

unit was established as a part of larger reorganization and transformation at P&G and it

brings together financial, logistics, IT and HR services.

For that moment, the executives strived to grow more and changes for GBS unit

were inevitable (even though it already saved a vast amount of money for the company)

as long as the situation demanded it as it would result in more immense cost savings

afterwards. In the situation analysis below it would be showed in details that if the

company decides to undergo a reorganization, due to those changes for GBS, it would
P&G GLOBAL BUSINESS SERVICES CASE
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most certainly have to find ways to keep organizational culture on the high level. by

making huge internal changes.

The aim of the paper is to analyse the problem presented in the case, to suggest

the most appropriate alternatives to it, evaluate them and finalize the report with the

solution that would be projected and considered to be the most advantageous. Several

tools will help in the clarification of the situation and the development of the solution;

they include SWOT analysis, drawing of Mind Map, supporting all with theoretical

framework most suitable to the case and the problem itself. At the end, the paper will be

finished up with the conclusion overviewing the challenges of the case and advantages of

given decision.

1. Situation Analysis

1.1. Introduction

The situation analysis described below will introduce the readers with

important facts and information about the case including a brief history of a company,

description of GBS unit, employees motivation, and thus point out several case issues

and challenges.

1.2. Company History

Procter & Gamble history starts in Cincinnati, USA in 1837 which was a

relatively tough time to start a business, however P&G maintained their goals and built

up the prosperous business. It was founded by brothers-in-law William Procter and James

Gamble. Paradoxically, they would have never met if they had not married the two

sisters, Olivia and Elizabeth Norris. Their father-in-law persuaded them to become
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business partners and sign a partnership agreement. The company started as a small

family business selling soaps and candles and developed to a consumer products industry

giant for cleaning agents and personal care products which, nowadays, holds mainly

globally recognized brands such as Tide, Always, Crest, Pampers, Pringles and many

more, in total 70 different brands.

Interestingly, by year 2002, thirteen of P&Gs brands, each one with over one

billion in sales would rank in the top 70 companies on the Fortune 500 list, if separated

from the parent company, which proves that innovativeness and dedication are at the core

of the P&G business and that the business itself is very stable and truly deserves to be on

the top position in the market.

1.3. Introducing GBS

Procter & Gamble wanted to transform the way their business is done. And they

did it by creating Global Business Services unit in 1999 which integrates

finance/accounting, information, logistics, purchases and other in one department. In

order to do that, they had to reorganize their company and compiled a team of more than

seven thousand proactive employees leading change and helping to drive business. After

the reorganization, all the services indicated above were able to work accordingly and as

one separate entity, consequently being more efficient and taking advantage of synergy.

Resulting from that, in late 2000, GBS achieved significant cost savings for the company

(hundreds of millions). However, those achievements anyway have lead many P&G

executives to have concerns about continuing their investments in GBS. With all of that,

they proposed to make some additional changes and outsource all the possible operations

in order to position the company for future growth.

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1.4. Employees

One of the most crucial factors leading to P&Gs growth and success over the

years was the great devotion of its workforce and commitment of its employees. The

company was frequently recognized by national publications as a very desirable place to

work. To many residents of Cincinnati at that time, having a position in P&G was the best

guarantee of job security and high job satisfaction. The employees were the ones who

contributed the most to an outstanding performance of the company.

1.5. Case Issues and Challenges

Time has passed, GBS has already been operating for some time after

introducing it in 1999, showing outstanding results. However, the executives found out

that there is a way to be more efficient and productive in the way the unit works; they

pointed out several options (firstly thirteen, then reduced to four) how to do that. One of

the options was to spin off GBS as a separate business outside of P&G, another one was

to outsource all of GBS in one deal to one partner. Nevertheless, they were considering to

retain GBS in-house as well as it will preserve all the control over its people and

processes the company already had.

Any change in the companys structure and the way it works always brings

many challenges, and in this case, it also brought a couple of them. Issues mainly were

caused in regard to the workforce and human resources, the people who were the core

value and the most important asset of P&G. Outsourcing GBS or spinning it off would

designate that the employees might have found themselves working for other company.

They would most probably feel betrayed and unfortunate as they worked with the full
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devotion and dedicated themselves to constantly produce value for P&G. The fear of

being laid off would also be in the mind of majority as long as the reorganization is

always a tricky thing and chances that some people would be let go are quite high. All

those things are very challenging and should be kept in mind, worked through and

developed when the management board would come up with the final decision. Concerns

and uncertainties are unavoidable.

1.6. Situation Conclusion

Overall, the company had to decide upon a major issue, and, at the same time,

to work with the employees uncertainty and their resistance to change due to the decision

that could be undertaken; at the same time keep their values as they were brought to the

people initially in order for them not to feel unhappy with the possible solution. The

decision was tough as long as the organizational culture, which was building up many

decades and was quite successful, was definitely at risk. Further in the paper, the case

would be analysed more deeply giving readers better understanding of how the concerns

have appeared, understanding of strengths and weaknesses of the situation, pros and cons

of the alternatives and following up with the best solution that should be made in the

given case.

2. Problem identification

2.1. SWOT analysis

From situation analysis part, we can see that there are some weak and strong

points in the organization. To analyse company more precisely and make inferences from

information which was mentioned in situation analysis part, we need to use analysis tool
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SWOT. The analysis of organization is made from organizational behaviour

perspective, therefore it is focused more on internal issues, which are strengths and

weaknesses of the organization.

Strengths. The analysed strengths of the company are the following:

Strong Culture;
Job security and satisfaction;
Loyal employees;
Good public image.

There are strengths which were mentioned in the case and situation analysis part.

Firstly, P&G has a strong culture. P&G ensures that set of values and norms which exists

is shared widely and rooted deeply, that is why for every employee who joins the

company there is provision of purpose, values, and principles. Leadership, ownership,

integrity, passion for winning trust, are explicit statements which describe the

organizations values. New employees are screened carefully to ensure that they fit in the

culture: We attract and recruit the finest people in the world. Secondly, job security and

satisfaction are guaranteed for each employee: Being hired by P&G was the best

guarantee of job security and satisfaction. Moving on, P&G can boast its big number of

loyal employees who had been with the company for 20-plus years. Last but not least,

P&G has its own history and is well-known worldwide and it owns good public image:

The company was often recognized by national publications as a great place to work.

Weaknesses. As the company has several strengths, it also possesses few weaknesses,

that are the following:

Negative employees reaction;

No strategical plan before announcement;
Uncertainty about employees future.
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From the weaknesses side, we can see that P&G company has a lot of facets that have

to be improved. P&G had issues with negative employees reactions: Many employees

felt betrayedpeople were very upsetsome of the GBS employees even quit their

jobs. Before announcing, David Walker did not have any strategical plan how to deal

with employees concerns and what future was waiting for the GBS employees. As a

consequence, most employees were very shocked by the news and felt anxious. What is

more, after announcing about GBS outsourcing many of the employees were

understandably concerned about their future at P&G, as was mentioned in the case:

Employees spent many hours speculating with their co-workers about whether their jobs

were safe and when the transition, if it were to happen, would take place.

2.2. Mind Map and Theoretical Framework

To start with, this case shows that there are some employees who accept the

outsourcing in the company. According to them, it would be an opportunity to grow and

develop skills with the new company. Also, some workers are expecting to get a higher

salary, that would help them to pay for their children education. Thus, SWOT analysis

allowed seeing that the core problem of Procter & Gamble company is with the remained
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part of employees who react negatively due to uncertainty. The theory of resistance to

change (Greenberg & Baron, 2000) must be applied in order to find out causes of the

situation. There are five factors. The first one is an economic insecurity, which causes the

potential threats to livelihood of the employees. The second is fear of the unknown. It

describes the negative emotions and panic of workers when well-established patterns are

disrupted. It often causes unfamiliar conditions, a state of affairs that often is rejected.

The third factor is threats to social relationships, which describes a strong relationship of

workers to one culture and how hard is to change the work environment. The fourth

factor is habit. It describes the affection of employees to one job position and the

resistance to develop work skills. The last one is failure to recognize need for change. It

shows the workers' recognition to change in their organizations but they keep the things

same because it may overpower their willingness to accept change.

2.2.1. Economic insecurity. This is the first branch, which was made using

information from the case. This branch means that a lot of workers are afraid of losing

their job position and scared of the salary reduction. This is because employees have

spent too many years in one company where they were feeling secured. According to the

case, the employers want to keep almost all capital resident within GBS but they are not

sure if all employees would retain the same job position. Also, it was mentioned that

P&G company always offered generous benefits packages. It means that they proposed

a good salary. On the other hand, now the company does not know if it can apply the

same working conditions for the GBS employees.

2.2.2. Fear of the unknown. The second branch is about the fear of the

employee's future. For many years, workers knew their responsibilities. They did not
P&G GLOBAL BUSINESS SERVICES CASE
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think to leave their job position or go working for another company. Moreover, day by

day, they were doing the same things in the company and they got used to the companys

rules. As a result, when the changes have been announced (without any following

explanation about the employees future) employees were in panic and shocked. They

were feeling like thrown out of their comfort zone. That is why the negative approach

became predominant in the company.

2.2.3. Threats to social relationships. The third branch is about the strong

cultural values. Procter & Gamble company pays a lot of attention to their employees.

For them employees are the core value. Employees and their managers always

communicate openly. Also, managers pay a lot of attention to integrity of friendship

groups. All employees always feel appreciated equally. As mentioned in the case, Procter

& Gamble company act on the conviction that the men and women of the company will

always be the most important asset. That is why, when the decision was announced, a lot

of workers felt sold off and betrayed because they put a lot of efforts and time in order

to save money and maximize profit of P&G. Moreover, a lot of workers were scared of

changing their position in other company because they got used to communicating and

working in an open way. As a consequence, some people decided to quit their job.

2.2.4. Habit. The fourth branch is about the job that people learn and do

constantly. Sometimes the job can become so habitual that is why it is easy to perform it.

According to the case, an employee from New Jersey was a part of P&G community

almost 28 years. She did not have intention to leave her job until retirement. This

example reflects strong commitment to job position. The habitual feature of the work
P&G GLOBAL BUSINESS SERVICES CASE
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performed in P&G company for the majority of employees is one of the hardest things to

allow to change.

2.2.5. Failure to recognize need for change. The last branch is about the need to

make changes. Change is inevitable, especially in business. Organisations should always

be prepared to adapt to new things and embrace change. They should frequently re-

evaluate their business model and question the suitability of approaches and strategies,

which are exercised to reach long-term objectives. Even though the main value for

Procter & Gamble is their employees, but at the same time they should maintain high

profits and try to improve their companys business strategies. The P&G situation proves

that some part of workers can accept the new challenges in the workplace. They see the

opportunities to grow and develop their skills. On the other hand, the other part sticks to

the traditional thinking and neglects obligatory changes in the company.

According to the theory, the uncertainty about the employee's future is widespread

problem which has to be solved. These five factors of the theory show the main reasons

why employees are feeling so gloomy and disappointed. The goal of managers should be

giving employees friendly and flexible environment that creates atmosphere of

understanding and helps to cope with changing factors. In order to manage and keep the

positive surrounding of all employees some decisions have to be made.

3. Scientific Article Presentation

Change is inevitable part of organizational processes and has both inside and

outside influence on the company. According to Procter & Gamble: Global Business

Services article, the main issue that P&G faces is how to handle the reactions of their

GBS employees. The employees resistance to change is the problem identified in the
P&G GLOBAL BUSINESS SERVICES CASE
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article. The analysis of scientific article of Stensaker and Meyer "Change experience and

employee reactions: developing capabilities for change" gives a clear insight into how

previous experience with organizational change influences employees response to a

change.

Inger G. Stensaker and Christine B. Meyer, (2011) "Change experience and

employee reactions: developing capabilities for change" aims to examine how exposure

to more frequent organizational change may lead to a more positive reaction to a change

and whether individuals develop change capabilities (Stensaker & Meyer, 2011, p.

107).

Two studies were conducted consecutively. The members of an executive MBA

program were sampled for the pilot study. In focus groups of four or five participants 30

top and middle managers of Scandinavian companies were sharing and discussing their

personal experience with organizational change and corresponding reactions. Insights

from the pilot study lead us to believe that employees experience could be important for

understanding reactions to change (ibid, p. 110). Therefore, organizations with large-scale

planned changes were chosen for two subsequent studies. In the first study 30 interviews

were conducted in banking and insurance companies and participants were asked about

reactions and different ways of managing change. In the second study, pharmaceutical

and postal services companies were targeted and 20 participants were interviewed in

order to compare reactions among change experienced by employees across industries.

All interviews were semi-structured and lasted approximately 90 minutes (ibid, p.110).

Firstly, the findings show that experienced employees do not actively resist

change, but instead show loyal reactions (ibid, p.121). Secondly, the study indicates that
P&G GLOBAL BUSINESS SERVICES CASE
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positive experience with change can contribute to the development of change

capabilities also at the employee level, by generating an ability to cope with the

uncertainties of change, maintaining control and increasing ones own market value

(ibid, p.121).

These implications are relevant not only for P&G employees, who are resisting

organizational changes, but also for managers who play an important role in facilitating

the development of employee change capabilities (ibid, p. 121). Since P&G employees

should perceive changes as process-based learning, which enrich knowledge and develop

the capability of dealing with uncertainties at a workplace.

5. Alternatives and Evaluation

5.1. Possible Alternatives

Due to aforementioned theoretical analysis, the key P&G internal problem is GBS

fear of the unknown that leads to the resistance to organizational change and triggers

negative reactions. To cope with the issue, alternatives are provided and assessed.

5.1.1. Employee education. Education helps employees comprehend the

consequences of changes and be aware of the benefits or costs that changes will bring.

This leads to alleviation of fears and negative reactions.

5.1.2. Employee involvement in the decision making through representation

by managers. As the involvement through employees feedbacks did not help and was

time-consuming, this alternative provides a new and quick method to involve employees

in the decision making.

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5.1.3. Negotiate agreements with providers. In order to eliminate the

uncertainty of employees future and avoid their potential losses, real contracts and

agreements can be considered as an alternative.

5.1.4. Stress management. To deal with changes, employees need low levels of

stress.
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5.2. Evaluation of Alternatives

Alternative Supporting Actions Benefits Costs

1. Employee a) Providing exact Meetin

education short-term strategic Works gs require time
plan (Boguslauskas in short- and more
& Kvedaraviien, term scheduling
2008) for Additio
employees: Reduc nal IT services
Reasons for GBS es needed
outsourcing uncertaint Trainin
Identified possible y and fear g is time
countries of what is consuming and
Key suitable going to expensive
vendors happen

Data showing that
Preve
outsourcing is
nts losing
more beneficial
friendly
than future growth
social
in own services
relationsh
Risk analysis ips
Prepared
proposals for Reduc
vendors es
Identified needed economic
skills and uncertaint
resources y
Prepared project
plan with Impro
preliminary dates ves
Prepared budgets appreciati
on and
b) Better urgency
communication: to change
Reass
uring words Decre
about wages ases fear
from power of
holders, changing
meetings with habitual
managers with work
emotional
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sensitivity Future
Webp investmen
age platform t
with news and
exact plans and
consequences for
employees
(benefits exceed
costs),
educational
materials and
also connections
after outsourcing
Prom
ote open
organizational
culture, risk-
taking attitudes
and alter
companys
values
c) Making status quo
uncomfortable:
Provi
de data that
current GBS will
not be capable to
deal with scopes
of work to attain
future goals
d) Training:
Ensur
e employee
training if job
position will
change/improve

2. Greater Direct involvement: Time

employee Invol Increa consuming since
involvement in ve employees ses there is a huge
into challenges
decisions via employee number of
and problems at
representation by all levels so they s employees
managers can make change ownership Potenti
Involvement through of change al conflicts
 P&G GLOBAL BUSINESS SERVICES CASE
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managers if Might
management is not Enhan not lead to change
sure about the best ces Manag
decision: ers perspective
commitm
Gathe
ent to might not fully be
r GBS managers
for a 3-day change representative
session and
develop a Reduc
strategic plan. In es fear of
addition, make unknown
follow-up
meetings. Faster
decision-
making
process

3. Negotiate Avoidance of Time

agreements employees Increa consuming to
with providers potential losses and ses negotiate
negotiate benefits Huge
agreements with for difficulties in
other companies: outsource finding companies
Provi d and making deals
de economic employee and not suitable
security s for a short-term
through similar problem
salaries (job Elimi elimination
and payment is nates Compli
not lost, new economic cated and many
career insecurity resources needed
perspectives) because of large
Make Decre scope of unique
social losses ase cases
less visible resistance Very
(agree on team costly since
employment) Reduc companies might
Agree e social want
on similar job insecurity compensation for
positions if greater expenses
needed Reduc
Find e fears
companies with coming
similar values from
 P&G GLOBAL BUSINESS SERVICES CASE
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habitual
job

4. Stress Coun Adapta

management selling that More tion to change in a
includes help of relaxed way of days-off is
professionals reaction time consuming
with the aim of to change Counse
better stress lling requires
management of Emplo hiring of
employees yees will professionals
Provi feel that Expens
ding days-off for company ive due to
employees to cares for temporary loss of
help them cope their well- workers
with stress and being, Might
giving more rest that will not help, because
as a preparation reduce the there are more
for the upcoming fear of than just
change change psychological
problems

5.2.1. Inferences from Alternatives. It is clear from benefits that all alternatives

deal with employees uncertainty and resistance to change. However, analysis in the table

shows that they differ by efficiency and possible difficulties. Therefore, the most helpful

and least costly alternative would be to educate employees.

6. Solution

Taking into consideration that employees are one of the most valuable asset of the

company, making sure that their well-being is protected and ensuring them in their safety

are vital objectives for the managers during the period of decision-making in terms of
P&G GLOBAL BUSINESS SERVICES CASE
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outsourcing. The main identified problem in the company is uncertainty about

employees future that subsequently triggers fear, resistance, turnover and eventually can

lead to the result of low productivity and decline of the outsourcing option that could lead

to substantial growth and development. The rationale behind outsourcing is in the

benefits that it can potentially bring to the company, which make employers and

employees better off simultaneously. Having aforementioned aspects in mind, the puzzle

needed to be solved by the company is reflected in the alternative that can mould

companys objectives and employees vision of well-being in one direction neutralizing

the issue of uncertainty. For that task the alternative number one Employee education

fits the most due to its informative nature. Uncertainty by the definition implies little or

no knowledge about the future, in case of P & G it refers to the situation when employees

experience fear and resistance due to absence of relevant information about outsourcing

steps and benefits based on what they could make rational decision. The advantage of the

chosen alternative is primarily in its wide scope of applicability, prevention of potential

conflicts of interest and relatively low costs comparing to other alternatives because it

supports outsourcing that will make company more efficient and profitable according to

the information provided by the case. Employee education consists of strategical plan

implementation that includes step by step description of how exactly the change is going

to be implemented, which will allow employees to scrutinize the change from multiple

angles and be informed to the highest degree. Communication part of the solution is vital

because of its emotional aspect that will help to get closer with employees and explain

them the need for change not only from quantitative point of view but also from

qualitative. Managers will communicate with employees on constant basis with help of
 P&G GLOBAL BUSINESS SERVICES CASE
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meetings, web-page, value-booklets and make sure that the majority of employees will be

quite informed about all advantages of the outsourcing. The aspect of making status quo

uncomfortable can be very useful in psychological sense, because company will make

clear the presence of all disadvantages triggered by refusal of change, that eventually will

decrease the fear of leaving the old work habits. Finally, trainings are crucial for practical

knowledge acquiring, that will create safety pillow for the employees, who might face the

alteration in their job requirements, providing the actual skills for the changed work

environment. The cost assessment of the alternative implies time resource and

management, because of meeting arrangements, the IT services for the web-page and

hiring training people, however compared to the rest of alternatives these costs are the

most manageable. Therefore, the description of solution is provided in the table below:

Alternative Rationale Time Resources Consequenc

es

1. Strateg Making sure that The plan The main Diminished

ical all the steps of the application resource fear and
plan outsourcing are will start here is uncertainty
clear and analysed immediately time, of
will promise the because it is because employees
fluent transition oriented on managers in their
alongside with short-term will have future due to
confidence of problem to spend having
employees in their solution. quite a lot constant
future. Managers It of time to updates
will spend their will continue be fully about the
efforts on finding for as long as involved outsourcing
all possible data needed till in change and
and requirements the change informati having
regarding the will be on search managers in
outsource process entirely alongside total control
that will be used completed. with of all change
in argumentation Ther weekly requirements
for employees that .
 P&G GLOBAL BUSINESS SERVICES CASE
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subsequently will e must be meetings.

make them less weekly A
fearful of change. updates for nother
Therefore, employees important
managers will be The resource
arranging work done can be
meetings with by managers reflected
other providers, can be in terms of
spend time doing continued for money
research on all several paid as
documentation months 10% add
necessary for including up
change, searching meetings premium
for information with as a
that will be employees percentage
relevant for simultaneous of their
employees and ly with their salary for
arrange meetings meetings extra
with employees to with efforts
keep them providers. made by
updated on their managers
findings. to promise
fluent
adjustment
to the
necessary
change.
1. Bet Apart from T
ter quantitative ime for Money spent Emotional
communicatio information meetings as salary persuasio
n: concerning the with for IT n calms
adjustments it is employees profession employee
important to take for al s down
into account the conducting
qualitative and all sensitivity Money spent Having
emotional aspects problems on online
of communication T purchase platform
with employees. ime spent on of paper allows to
Having web-page creation and for find data
with assure easy promotion of booklets, and
access to all the web- on salary discuss
necessary page, for crucial
information and afterwards booklets issues
will allow online time spent on designer without
 P&G GLOBAL BUSINESS SERVICES CASE
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discussions, posting and any

assurance updates and distributor obstacles
meetings will improvement of Fear
increase s booklets disappears to
creditability of T the
company in ime on Time spent by developed
employees' eyes, designing, managers support
provision of printing and for system and
booklets will play handing in meetings information
the role of booklets with provision
marketing- employees
constant reminder concerning
of outsourcing sensitive
advantages issues
triggered
by the
outsourcin
g
1. Ma Psychological P Not only
king status rationale, because rinting 5% premium decreases
quo critics of current written for fear but
uncomfortable position explanation managers creates fear
: stimulates with who will towards not
motivation supporting come up accepting a
towards the data and with decision to
change. Apart putting it on informatio outsource
from promotion of the desk with n and
the change, there information supporting
is a necessity to for data for
explain employees status quo
disadvantages of B critics
status quo to ringing up
allow employees that topic Time spent on
to have full during the delivering
picture of the weekly arguments
situation meetings to the
employees
1. Tra Ensuring Extra time spent Hiring few Practical
ining: employees that by employees in (5-7) training knowledge
they are ready and their workplace specialists is one of the
prepared for the that provide most
change by necessary assuring
supplying them skills that will factors for
P&G GLOBAL BUSINESS SERVICES CASE
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with practical be required in employees,

knowledge the new because
workplace uncertainty
disappears
with
knowledge
of activities
required in
the new
conditions

7. Conclusion

After analysing the case, there were several lessons learned. First, it is important

to keep organizational culture on high level and keep the same commitment to your

employees if you are the manager or owner of the company. In the P&G: Global

Business Services case, we used the Resistance to Change theory in order to find out

the main causes of the problem. It allowed to understand that workers are devoted to

P&G. They feel strong commitment to the culture of the company and job position. That

is why it is hard for them to accept outsourcing and changes of the company. They felt

betrayed and disappointed. Even though, employees are considered the most important

value in P&G, the workers should always be prepared for unexpected changes because

company should always be profitable and innovative, so the changes are inevitable.

According to the scientific article presented, experienced employees not

necessarily resist changes, but instead show loyal reactions. P&G employees should

perceive changes as learning process, which definitely enriches their knowledge and

develops the capability of dealing with various uncertainties at a workplace.

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From the alternatives that we indicated it is quite visible that they differ by

efficiency and possible difficulties; employees uncertainty and resistance to change were

primarily discussed. It was decided to choose the alternative which requires the lowest

costs and that alternative is Employee education. The precise description of the solution

was provided which proved that the option chosen is very beneficial and requires

relatively low costs and can resolve many issues in regard to uncertainty of the people.

The employee education solution implies three main aspects: informative nature,

emotional persuasion and provision of practical knowledge. The combination of

aforementioned factors plays a crucial role in reduction of fear and uncertainties of

employees and furthermore makes them motivated and willing to undertake all necessary

steps that will help the company to go through the change.

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References

Inger G. Stensaker, Christine B. Meyer. (2011). Change experience and employee

reactions: developing capabilities for change. Personnel Review, Vol. 41, pp.106-
124.

Greenberg, J., & Baron, R. A. (2000). Behavior in organizations: Understanding and

managing the human side of work. Upper Saddle River, NJ: Prentice Hall.

Boguslauskas, V., Kvedaraviien, G. (2008). Strategic outsourcing plan and the structure
of outsourcing process. Engineering Economic, p. 60-66.